It is a quiet day for the markets today with no major economic releases in sight. As a result, for the most part, the markets could be potentially trading off from Friday's price action.

In Europe, the Brexit negotiations are due to kick off today. Nearly a year after the UK voted to leave the EU, both the Eurozone and the United Kingdom are expected to begin negotiations on the exit deal. In March, the UK Prime Minister, Theresa May triggered Article 50, after much deliberations and also dealing with the Supreme Court on seeking parliamentary approval.

Making the situation a bit complex is the fact that the recently concluded elections in the UK saw no clear outcome. Although the ruling Conservatives Party won a majority in the recently concluded elections, it was still short of reaching the milestone required to form a majority government.

Complicating matters is the fact that other parties are unwilling or making it difficult to negotiate with the Conservatives Party. Nearly all the parties involved have ascertained that they will see the UK through the Brexit. However, there are a number of differences on the way this can be achieved, especially with no leadership in sight.

Based on the above, the Brexit negotiations are expected to be length. For the most part, the UK's side will need to prepare a plan. On the other hand, the EU-27 is seen coming to the table with a much stronger support and plan. This automatically puts the euro currency in a better spot than the British pound.

For the near term, the British pound is seen to be bullish due to the fact that the Bank of England could hike interest rates, but nothing is certain just as yet. For today's binary options trade signal, we recommend CALL options in EURGBP.

We would look for EURGBP to test the support at 0.8756 and purchase daily CALL options for 20:00 GMT expiry time, as we expect to see EURGBP close higher for the day.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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